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notice u/s 143(2) sent by ordinary post by it dept


My client (Individual) has received a notice on Feb 2008 from Income Tax Dept u/s 143(2) and  Assessment office (A.O) asked him to attend his office regarding FY05-06. This notice was sent by ordinary post.


1) Does the A.O / IT Dept has any specific info for more more tax payment on my client tax filings?


2) If the notice is NOT received by my client what would happen as this is served by odinary post (not by registered post)?


3) When my client attended AO office for enquiry, A.O asked for bank statement and share transaction details and credit card details. Does the AO empowered to query each and every debit / credit transaction in the bank statement  ? It is very difficult to explain now why a cheque is debited or credited to his a/c.


 


 


 

 
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ha21@rediffmail.com Mumbai : 9820174108

The Income Tax Officer (I.T.O.) is empowered and has discretionery powers to enquire for each & every transactions (however small or big) for the last 8 years, which includes Bank statements, Credit card statements, Share transactions & statements, Accounts books, Receipts  & payment books etc...


I.T. notice is sent by Govt. despatch office and every despatch is registered in the despatch register. It is sent under Govt. postal stamp.  U/s 27 of the General Clauses Act, a notice sent by ordinary post is termed as "delivered" within 5 working days.


The I.T.O., is the assessment officer has discretionery powers to assess the Income Tax returns for the last 8 years.  He can assess and impose assessment tax, penalty, interest etc... based on the documents assessed by him.  His authority is final for purpose of assessment.  If you do not like his assessment order,  you have every option to "appeal"  to the  C.I.T. or the Tribunal ...


A citizen (assessee) is bound by law to preserve all such documents and produce whenever demanded by the I.T.O.  In fact same is applicable for Sales Tax, Excise, Octroi and other statutory levies & taxes.


Keep Smiling ... HemantAgarwal

 
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Advocate

the AO have power and send even ordinery post , dont ignore it. just  go and meet  the AO and  get the deatails of qurey what could be clarified. If our side is clear then y should we bather whether it come by ordinery or registerd.


so keep the mind free and make to appear


 

 
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What would happen if client has changed his rented house? He won't receive this letter as its ordinary post.

 
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ha21@rediffmail.com Mumbai : 9820174108

Venkat Reddy :


A person is law-bound to update his residence address and business address with the statutory authorities (like I.T., S.T., Excise, Customs ... ).  Failure to do so is "concealment" or "avoidance".


Also, if your client has changed his rented house,  He won' receive ordinary post letters and for that matter he won't receive even Registered letters or Gifts.


Certain statutory laws are not in favour of the citizen (like I.T., Excise ...) They also have favour with the Govt. agencies, in most cases.


Keep Smiling ... HemantAgarwal


 


 

 
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How much is tax (10% or 30%) for short term capital gains from equity trading for FY 2005-06?  Is it 10% or 30% ?

 
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Any idea on above taxation structure query?

 
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Advocate

It is important to file proper reply to ITO notice, the reply you chose or not chose to give now makes the basis for any future appeale, so at most care has to be exercised. I fully agree with Mr.Hemanth Agarwal and also like to point out that there are already some information about you available with ITO in form of AIR, so be careful in what you state as it meight turn against you.

 
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Now, assessment order is passed and is Rs 21,000 to pay including due and interest amount.


The Assessing Officer asked to come again to see if any penalty order. I understood that Assessing oficer can penalise upto 4x 21,000. Is the assessing officer expecting money from my client by threatening to impose penalty?

 
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Advocate

Yes, the A O can penalise upto 3 times for concealment and furnishing inaccurate details u/s 271 of the Income tax Act. You can file an appeal against the assessment order. give full details of the case and also the assessment order

 
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